5/29/2010 ENTERPRISE SYSTEMS. Fundamentals of Business Information Systems. Summer Pre-history of business computing

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1 ENTERPRISE SYSTEMS Summer 2010 Fundamentals of Business Information Systems Pre-history of business computing 1

2 Early history of business computing 1960s Focus on inventory management and control in production environments LEO I (Lyons Electronic Office) in First computer specifically focused on business. Early history of business computing 1970s MRP software debuts to assist in production scheduling and inventory mgmt. 2

3 (More) contemporary history of business computing 1980s 1990s MRPII expands focus of previous systems into management of entire production process ERP systems apply same data collection and handling mechanisms organization-wide Evolution of Business Computing MRP--Materials Requirement Planning (1970s) MRPII--Manufacturing Requirements Planning (1980s) ERP--Enterprise Resource Planning (1990s) 3

4 Enter SAP SAP pioneered the ERP software market. Five former IBM employees in Manhheim, Germany founded SAP in Systemanalyse und Programmentwicklung Systems Applications and Products (now), System Analysis Program Development (then) 3 Goals: SAP Software Timeline 1973 "System R" (real-time data processing) released to market. (Later came to be called "R/1") 1978 "R/2" 4

5 SAP Software Timeline 1992/93 SAP R/3--3 tiered architecture Database, application, user interface (client) Open architecture Improved user interface 1994 and beyond Enhancements and additional modules to R/3 Various "marketing names": SAP ECC, SAP Business Suite, mysap, mysap Business Suite, mysap.com. SAP ERP, SAP Business Suite (preferred current names) SAP ERP 3-tiered Client-server architecture USER PCs Application Server Database Server Application Server USER PCs Application Server Application Server 5

6 Client-server system Database and Application Server Nothing important is saved on your PC. Only things saved on the server are saved, and they are saved for good. SAP ERP Product Evolution Graphic copyright SAP 6

7 Who is SAP today? SAP AG World s Largest Business Software Company World s Third-largest Independent Software Provider Annual revenues exceeding $10 billion. Company Statistics 51,400 employees in more then 50 countries 1,500 Business Partners 75,000 customers in more then 120 countries 12 million users 100,600 installations Source: SAP AG website SAP Software Applications Small & Medium Size Solutions: Business One 1-50 employees. SE (Small Enterprise) focus. Bought (not made) by SAP. Not sold by SAP directly. Business by Design /500 employees. SME (Small, Medium Enterprise) focus. Based on Service Oriented Architecture (SOA). SAP All-in-One 100/ employees. ME (Medium Enterprise) focus. 7

8 SAP ERP Modules & Business Suite PP QM MM PM SD HR SAP R/3 Client/Server ABAP Basis IS FI CO WF AM PS SAP SRM SAP PLM SAP ERP SAP SCM SAP NetWeaver SAP CRM SAP ERP SAP Business Suite SAP Industry Solutions Best Practices Aerospace & Defense Automotive Banking Chemicals Consumer Products Defense & Security Engineering, Construction Healthcare High Tech Higher Education Industrial Machinery Insurance Life Sciences Logistics Service Media Mill Products Mining Oil & Gas Pharmaceuticals Postal Services Professional Services Public Sector Railways Retail Telecommunications Utilities Wholesale Distribution 8

9 Varied Deployment Environment Microsoft, SAP partnership to add SAP functionality directly to Microsoft Office products ERP System Functional Details ERP Systems are large-scale applications that run on top of database systems for storage and data management. SAP typically used with Oracle, DB2, or MS SQL. Basic SAP installation--over 28,000 tables. ERP Systems are not "install and go." Configuration required. Configuration: making the standard software fit your business processes. SAP: over 8,000 configuration decisions. ERP Configuration Management--full time job 9

10 ERP System Functional Details Systems are large-scale distributed applications that need system level administration and control. Performance tuning, network and equipment management, redundancy and backup, development and test systems, transport. SAP "Basis Administration", "NetWeaver Administration" non-trivial for large company with significant infrastructure. SAP Configuration, Development Other types of Enterprise Applications BI-- Business data and analysis software to improve decision making. CRM-- Facilitates customer interaction (customer sales and service) SCA-- BI applied to resource acquisition and distribution. SCE-- Automating execution of manufacturing process. SCM-- Integration of entire manufacturing process from resource acquisition to final distribution. 10

11 Other types of Enterprise Applications SCP-- APS-- BI focused on strategic forecasting of demand for goods and effective inventory management. SEM-- BI focused on strategic execution, i.e. translating company goals into operational decisions. TMS-- Shipping and routing of outbound goods. WMS-- Raw and finished goods storage management. Other major ERP software vendors Oracle Applications Oracle, JD Edwards, PeopleSoft, Siebel, Retek Microsoft Business Solutions Dynamics (Great Plains), Navision, Axapta, Solomon The Sage Group Sage Software Accpac ERP, PeachTree SSA Global Technologies BAAN 11

12 References and Links Wallace, T.F. and M.H. Kremzar, ERP: Making It Happen: The Implementers' Guide to Success with Enterprise Resource Planning. 2001: Wiley Copyrights Presentation prepared by and copyright of Dr. Tony Pittarese, East Tennessee State University, Computer and Information Sciences Dept. Podcast lecture related to this presentation available via ETSU itunesu. Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iseries, pseries, xseries, zseries, eserver, z/vm, z/os, i5/os, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation. Linux is the registered trademark of Linus Torvalds in the U.S. and other countries. Oracle is a registered trademark of Oracle Corporation. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in other countries. Business Objects is an SAP company. Other products mentioned in this presentation are trademarks of their respective owners. 12